The Financial Impact of Return Fraud According to
Posted: Sun Jan 19, 2025 4:03 am
Both of these illegal practices can drain a business of significant revenue. While there are specific differences between the two, their roots can often be traced back to deceitful customers or fraudsters. Therefore, by understanding the intricacies of return fraud and how to prevent it, sellers can also arm themselves against refund fraud.
The Financial Impact of Return Fraud According to a india telegram phone number list Statista report titled “Top Fraudulent Activities Impacting U.S. E-Commerce Merchants,” fraudulent return requests account for approximately 13% of merchants’ losses. Another 2022 study by the National Retail Federation on consumer returns in the retail industry showed that for every $1 billion in sales, retailers face up to $165 million in product returns.
For every $100 in merchandise returns accepted, $10.40 is lost to return fraud. When narrowing the scope to e-commerce, up to 10.7% of online returns are fraudulent. Clearly, return fraud is a widespread problem that affects merchants everywhere, so unless retailers put strong mechanisms in place to curb unauthorized returns, their bottom line could suffer a major setback.
The Financial Impact of Return Fraud According to a india telegram phone number list Statista report titled “Top Fraudulent Activities Impacting U.S. E-Commerce Merchants,” fraudulent return requests account for approximately 13% of merchants’ losses. Another 2022 study by the National Retail Federation on consumer returns in the retail industry showed that for every $1 billion in sales, retailers face up to $165 million in product returns.
For every $100 in merchandise returns accepted, $10.40 is lost to return fraud. When narrowing the scope to e-commerce, up to 10.7% of online returns are fraudulent. Clearly, return fraud is a widespread problem that affects merchants everywhere, so unless retailers put strong mechanisms in place to curb unauthorized returns, their bottom line could suffer a major setback.